Toyota Pays $50 Million In NHTSA Fines In 2010 - Is It Fair?

Earlier today, Toyota agreed to pay $32 million in NHTSA fines for two separate "slow to report" recall instances:

- In 2004, Toyota recalled 4Runners in Japan for a steering rod safety problem, but they failed to recall the exact same vehicles in the USA for the exact same problem until 11 months later in 2005

- Between 2007 and 2010, Toyota was slow to report and conduct pedal entrapment floormat recalls

Since NHTSA requires safety issues to be reported within 5 days, and since Toyota didn't report either of these problems within that time frame, today they were fined $32 million.

Says Toyota:

"Toyota is pleased to have resolved these legacy issues related to the timeliness of prior recalls dating back to 2005...These agreements are an opportunity to turn the page to an even more constructive relationship with NHTSA"

2010 TOYOTA NHTSA FINES DWARF GM NHTSA FINE OF 2005

In 2005, GM was fined $1 million dollars over "significant concerns" about GM's failure to report a windshield wiper safety problem. A NHTSA attorney said that GM's potential liability in this incident "far exceed(ed)" the $15 million maximum fine that NHTSA could levy.

NHTSA also said in 2005 that GM's failure to inform NHTSA about a potential windshield wiper safety issue exhibited a "pattern of behavior"...yet GM was only fined $1 million dollars at that time.

IS TOYOTA PAYING MORE THAN THEIR FAIR SHARE?

The question is: How can NHTSA only fine GM $1 million dollars in 2005 for "significant concerns" about a "pattern of behavior" and fine Toyota $50 million in 2010 for failing to report and conduct 3 recalls in a timely manner?

While it's clear that Toyota should be fined - probably substantially more than GM was fined - are Toyota's actions in 2010 *fifty times worse* than GM's actions in 2005?

Are these fines fair, or are they political?
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Joe_LimonJoe_Limon - 12/21/2010 2:24:41 AM
-7 Boost
No they've made far more than $50 million in profits over the years by being able to postpone these issues so that they could keep an "image" of reliability.


Joe_LimonJoe_Limon - 12/21/2010 2:25:06 AM
-12 Boost
they need to be fined more imo


uaw_laxuaw_lax - 12/21/2010 9:16:21 AM
-18 Boost
BD what a pointless comment.


kpaxxkpaxx - 12/21/2010 8:34:52 AM
-11 Boost
They should be fined more. No car manufacturer in history has been as deceptive as toyota!


uaw_laxuaw_lax - 12/21/2010 9:22:36 AM
-15 Boost
Where is said commercial if there are that many you should be able to find one. FYI for the past three years we have not been making cars as good as Toyota we have been making cars BETTER look at all of your Toyota recalls and how they first tried to blame the problem on floor mats and when that didn't work they tried to pin the blame on the parts company. You Toyota guys are the most biased.


StevezStevez - 12/21/2010 9:48:14 AM
-3 Boost
Yo! Don't paint all of us with the same brush. I admit that I do like Toyota's BUT what Toyota has done to hide the recalls is so WRONG! This whole recall situation means that Toyota cares more about profit then about safety! (And I said I liked Toyotas) So don't say all of us are biased... when the truth is half of us aren't.

Stevez


uaw_laxuaw_lax - 12/21/2010 10:18:44 AM
-12 Boost
WTF?


uaw_laxuaw_lax - 12/21/2010 10:20:34 AM
-11 Boost
Stevez... To you I owe an apology but look at your boy black dynamite it's guys like that that are throwing lies east and west.


uaw_laxuaw_lax - 12/21/2010 10:33:09 AM
-11 Boost
No company is perfect by ant means but the way some people post and defend blatant wrong doings you would think they own the company.


LexSucksLexSucks - 12/21/2010 11:46:02 AM
-14 Boost
Toyota builds the most reliable cars on the planet. Or at least they had us thinking they did. Now it's all starting to unravel and now you have retards here defending Toyota. What a joke. Buyer's pride maybe? Whatever it is, it needs to stop because the only folks that should be defending Toyota are the shareholders.

If I had a favorite brand and they started screwing up. The last thing I would do is defend them. But some people here feel uneasy, and are unwilling to acknowledge the fact that the brand that they like (or purchased) is screwing up. It becomes a pride thing. And because of that you have folks here defending Toyota to the death. Even when Toyota finally admits that they screwed up you have folks defending them.

Get rid of the pride folks. It’s OK to purchase a vehicle that isn’t what you thought it was. All the defending in the world isn’t going to make your purchase look like a wise one.



Joe_LimonJoe_Limon - 12/21/2010 2:46:36 PM
-12 Boost
well said +1


uaw_laxuaw_lax - 12/22/2010 3:37:20 AM
-5 Boost
You got ten deboost yet there are not ten toyota fans on this site hmmmm????


tattedtwicetattedtwice - 12/21/2010 1:24:12 PM
-11 Boost
Not enough. They should have to pay more, and then this amount for each life lost in their runaway lamemobiles.


g2okg2ok - 12/21/2010 2:05:58 PM
+8 Boost
I think the fines are excessive, but Toyota is thinking this donation will get the government off their back.


FijianFijian - 12/21/2010 2:15:24 PM
-9 Boost
When its all said and done Toyota will have paid Billions of dollars.They still are maintaining there is nothing wrong with their cars.I know too many people who own Toyotas with blown engines due to oil sludge.Just google engine sludge on consumer complaints.I have owned about 11 GM and Ford cars in my lifetime and none ever blew up.Most of these had over 200,000 miles when sold as I owned a Limo company also.Toyota reliability my #*!.


85bmw745i85bmw745i - 12/21/2010 8:41:57 PM
+5 Boost
These sludge problem cars were not maintained. I have taken valve covers off Chevy v8's with so much crystallized oil and sludge that you couldn't see the valve springs. Any car will sludge up if you abuse it and don't change the oil. My parents bought an avalon back in 01 and have not had to do anything but change the oil. Never once have they needed and alternator fuel pump or starter (something you change every 50-60k on GM cars). They just take it in every 3k to change the oil and thats it. This car has over 160,000 absolutely trouble free miles on it. and My dad was never big on imports, but is sold on Toyota. I am 33 and have owned numerous cars, mostly BMW's, but one was a 92 Celica GT. when I was in the military. I loved it even though it was FWD and it was super reliable. I loved comparing the interior build quality to those of my buddies domestic cars and would laugh at just how drastic the difference was. This was in 98 and back then the difference in quality between the imports and domestics was huge, to the point where I look back and wonder how anyone bought something from the big 3. Now days the tables are turning and the Domestics are about 90% there. The difference is becoming so minor that you couldn't go wrong with either.


truckmantruckman - 12/21/2010 2:43:36 PM
-3 Boost
Any company not reporting a safety issue should be fined huge dollars! the bean counters take this into account before peoples lives, they speculate what will cost the company more, death law suits or to fix it, and now the fines should be way more so the bean counters can't debate, lives or safety.


FijianFijian - 12/21/2010 6:30:49 PM
-3 Boost
The Towncars have the same engine that is in the Crown Vic and Cop Cars.These cars take the most beating day in and day out and need to be reliable.I cannot think of any Toyota that can take the abuse of a Cop Car or Limo.Give it a rest.My best friend only used Toyota parts and even insisted on Toyota oil (I told him Toyota does not have an Oil factory but he was a Toyota fanatic like some of you)At 68,000 miles while on a trip to LA the engine blew.I drove and picked him up in my 25 year old Chevy with 237,000 miles on it.


truckmantruckman - 12/22/2010 4:28:02 AM
0 Boost
lol, I am surprised the Toyota fanatics haven't all de-boosted you, Did your friend ever wake up?


85bmw745i85bmw745i - 12/22/2010 2:12:24 PM
+3 Boost
As a mechanic I can tell you the 4.6 is not a great motor. Toyota's older V6 and 4 cylinders like the older 2.2l 5S-FE were buletproof and could be beat on and neglected. I do agree that they should be fined if they are in the wrong, but American car companies have done the same. And trust me If you have ever been in a GM factory like I have you would never buy a GM car after seeing what goes on in there and how the workers don't care if something is assembled properly or not, and I have seen this with my own eyes when I was a heavy equipment mechanic working on their industrial equipment like fork lifts, etc.


SteveSteve - 12/21/2010 6:42:36 PM
+1 Boost
The fines are according to laws. They are not arbitrarily or discretionarily assigned. So the real question is: Is the LAW fair? Feds don't feel so, and so they are working on eliminating the cap to result in heftier fines. So for the time being, Toyota is paying their due share, according to law, for not reporting recall issue within the alotted time.

Howzat for a factual and unemotional opinion. What say you, Spies? Are facts more import (+1), or are emotions, regardless of the facts (-1)? I'll check back with you on this one.


truckmantruckman - 12/22/2010 4:25:13 AM
-2 Boost
This should not be who likes Toyotas, this is a serious issue being debated, you Blind brand lovers are so blind! The new rating here is who ever has the most negative boosts is on to something, so go on de boost me!, lol


FijianFijian - 12/22/2010 3:35:40 PM
0 Boost
Yes he is now considering buying American.Look at this link just about problems with Toyota engines.Too many people did not report since they were told it was their fault.One of my staff had the engine replaced since it siezed up but because it was not done at a Toyota dealer she is out of luck:
http://www.consumeraffairs.com/automotive/toyota_engine.html
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